Oct Flash PMIs Seen Lower : Preview - From 0815BST 23/10/20

EZ Mfg: BBG: 53.0 Oct vs 53.7 Sep; EZ Services: BBG: 47.0 Oct vs 48.0 Sep
FR Mfg: BBG: 51.0 Oct vs 51.2 Sep; FR Services: BBG: 47.0 Oct vs 47.5 Sep
DE Mfg: BBG: 55.0 Oct vs 56.4 Sep; DE Services: BBG: 49.4 Oct vs 50.6 Sep
UK Mfg: BBG: 53.1 Oct vs 54.1 Sep; UK Services: BBG: 53.9 Oct vs 56.1 Sep

• FR's, DE's and the EZ's flash PMIs are expected to ease slightly in Oct and the divergence between the mfg and the service sector is set to persist.
• All three services PMIs are seen below the 50-mark, while the mfg indices are forecast to signal expansion, although at a slower pace than in the previous month.
• Sep also saw a divergence on the country level with Germany outperforming its peers especially in the mfg sector.
• Italy was the only other country with a composite index above the 50-mark, while France slipped back to contraction and Spain's service sector suffers from the rise in Covid-19 cases.
• The UK's mfg and services PMIs are both expected to ease in Oct, however, both are anticipated to remain in expansion territory, signalling growth in both sectors but at a slower pace.
• Sep's survey noted an uneven growth in the service sector with business-to-business services growing but sectors which are more exposed to social contacts such as hotels and restaurants reported another downturn.
• This divergence is likely to persist in Oct as Covid-19 cases are rising, restrictions tightened and consumers are again cautious on spending.